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Peloton has denied reports that it has cut production, and says that it is still on course to hit targets – despite a rocky few months for the connected fitness firm.
The company’s share price slumped on Thursday after a report that said it was stopping production of its smart bikes and treadmills in February and March, after failing to find demand.
That report followed a tough few months for the company, which has dealt with concerns that it will be unable to keep up its growth as coronavirus lockdowns ease and people head back to gyms and working out outside.
But John Foley, Peloton’s chief executive, said that the reports were false in a message sent to staff and published online.
“The information the media has obtained is incomplete, out of context, and not reflective of Peloton’s strategy,” Mr Foley wrote. “Rumours that we are halting all production of bikes and Treads are false.”
He did suggest that the company could be looking at layoffs as it makes an effort to be “more flexible”. It also said that it was “right-sizing” production, and moving to reflect more “seasonal demand curves” which will require it to reset production levels so that it could grow sustainably.
But he said that the company was unable to share a detailed response because it is in a quiet period ahead of its results which will be released next month. In a separate press release, it said it was expecting to hit revenue estimates.
The statements sent Peloton shares back up again, reversing the slump that happened in the wake of the report. Mr Foley also said that the company had “identified a leaker” and was taking legal action against them.